Industry News

Nam Cheong Limited has announced the sale of two offshore support vessels (OSVs) for US$36.7m, marking its first newbuild sale in over a decade. The transactions involve a new multi-purpose support vessel and a 120-tonne Anchor Handling Tug Supply (AHTS) vessel, sold to operators in Indonesia and Egypt, respectively. Both vessels were delivered in the second quarter of 2026.

The proceeds from these sales will be reinvested into Nam Cheong’s shipbuilding activities, supporting either external sales or fleet expansion. This move is part of the company’s strategy to divest ageing vessels and optimise capital recycling for its shipbuilding operations.

Chief Executive Officer Leong Seng Keat commented, “Our strong OSV shipbuilding heritage and established global clientele base allow us to identify and capitalise on market opportunities for vessel monetisation. This enables the Group to capture earnings upsides through the sale of both newbuilds and existing ageing vessels.”

The demand for OSVs is expected to remain robust, with offshore engineering, procurement, construction, and installation expenditure projected to rise by 32% to US$71b in 2026. Nam Cheong’s recent success in securing its first shipbuilding contract for four OSVs in over a decade further signals a growing demand for newbuilds.

As the global OSV fleet ages, Nam Cheong anticipates increased demand for new vessels, positioning the company to benefit from emerging shipbuilding opportunities.

Singapore’s recent decision to tighten its monetary policy for the first time since 2022 is expected to exert pressure on the Singapore Overnight Rate Average (SORA) and banks’ net interest margins (NIMs), according to a CreditSights report. The Monetary Authority of Singapore (MAS) allowed a stronger Singapore Dollar (SGD) in response to inflation risks heightened by tensions in the Middle East.

The stronger SGD, coupled with lower US policy rates, is anticipated to attract capital inflows into SGD assets. These inflows could be further bolstered by safe-haven investments due to the Middle East conflict, leading to increased banking system liquidity and potentially lower SORA. However, with global rate directions likely to trend upwards, a pause in the downward movement of SORA may occur in the near term.

Despite the pressure on NIMs, banks are expected to continue deploying excess funding into High-Quality Liquid Assets (HQLA) to support net interest income. Additionally, capital inflows are projected to bolster wealth-related income, whilst lower rates should help mitigate credit risks.

The report highlights that whilst the immediate effects of the policy shift may challenge banks, the strategic deployment of resources and capital inflows could provide some relief. As the situation evolves, banks will need to navigate these changes carefully to maintain financial stability.

Singapore’s retail and capital markets have demonstrated notable resilience in the first quarter of 2026, according to Cushman & Wakefield’s latest MarketBeat reports. Despite ongoing geopolitical uncertainties, prime retail rents have seen growth across all submarkets, whilst investment volumes have surged, reaching over half of 2025’s total.

In the retail sector, prime rents in Orchard rose by 0.4% quarter-on-quarter, driven by sustained luxury demand and new high-end brand openings. Other City Areas and suburban regions also experienced rental growth, with increases of 0.6% and 0.3% respectively. The influx of new-to-market brands such as Kylie Cosmetics and Chick-fil-A has further bolstered retail demand.

On the capital markets front, investment volumes soared by 104.9% quarter-on-quarter to $19.7b, with commercial, residential, and industrial sectors leading the charge. The commercial sector alone accounted for $10.3b, surpassing 2025’s figures. Notably, the launch of the Singapore Central Private Real Estate Fund by Hongkong Land marked a significant transaction, managing assets worth $8.2b.

Singapore’s appeal as a safe haven, coupled with low interest rates, continues to support investment activities. The 3-month compounded Singapore Overnight Rate Average (3M SORA) has decreased to 1.07% as of March, further encouraging investment.

Looking ahead, the limited supply pipeline and potential rise in construction costs may constrain new development activity, enhancing the attractiveness of well-located assets with stable income flows. As geopolitical tensions persist, Singapore’s robust market fundamentals are expected to sustain its position as a key investment destination.

PSA Singapore has partnered with Motorola Solutions to implement advanced TETRA digital radio communications, aiming to enhance safety and operational efficiency at the Tuas Mega Port. This collaboration builds on a 20-year relationship between the two entities, with the new system set to support the port’s ambitious expansion plans.

The Tuas Mega Port, once fully operational in the 2040s, will be the world’s largest fully automated container terminal, capable of handling up to 65 million Twenty-foot Equivalent Units (TEUs) annually. The consolidation of operations from Tanjong Pagar, Keppel, Brani, and Pasir Panjang into this mega-hub is a strategic move to bolster Singapore’s status as a global maritime centre.

Motorola’s TETRA network will support over 4,000 users, facilitating an average of 540,000 voice calls daily to ensure seamless coordination across the port’s 24/7 operations. Philbert Chua, managing director of PSA Singapore’s container division, highlighted the strategic importance of the Tuas Mega Port, stating it leverages advanced technologies to enhance Singapore’s competitiveness and resilience in global supply chains.

Rajat Gupta, Motorola Solutions’ vice president for Asia Middle East & Africa, emphasised the importance of secure and reliable communication in maintaining productivity and safety as the port scales up. The TETRA DIMETRA™ 10 X‑Core platform will enhance network resilience with improved cybersecurity and backup communication links, allowing for future growth and integration of new services.

This technological upgrade is a critical component of Singapore’s Maritime Singapore Master Plan, which aims to maintain the nation’s competitive edge as a leading global hub port.

Savills Research has updated its forecast for Singapore’s office rental growth in 2026, predicting an increase of 3% to 5% year-on-year, up from the previous estimate of 2%. This revision is attributed to limited supply and sustained occupancy levels in the market. In the first quarter of 2026, average Central Business District (CBD) Grade A office rents rose by 0.6% quarter-on-quarter to S$10.02 per square foot, marking the highest level since the pre-pandemic period of 2019.

The demand for premium office space remains robust, with Grade AAA office rents increasing by 0.4% quarter-on-quarter to S$13.28 per square foot in Q1 2026. However, the growth momentum in this segment is beginning to moderate as rents approach cyclical highs. Vacancy rates in the CBD office market have also tightened, with the vacancy rate for Grade A offices dipping by 0.1 percentage point to 6.6%, the lowest since Q3 2024.

Alan Cheong, Executive Director of Research & Consultancy at Savills Singapore, noted, “With limited new supply and persistently low vacancy levels, landlords are well positioned to maintain pricing power.” He added that whilst geopolitical uncertainties and rising energy costs could introduce volatility, structural supply constraints are expected to drive rental performance in the near term.

The market’s resilience is further supported by stable income streams and improving investor sentiment amid a lower interest-rate environment. Despite geopolitical tensions, the office market continues to demonstrate strength, with landlords benefiting from strong holding power and the ability to increase rents.

Singapore Airlines (SIA) Group reported a significant rise in passenger traffic for March 2026, with a 14.7% increase compared to the previous year. This growth outpaced the 7.2% rise in passenger capacity, resulting in a passenger load factor (PLF) of 90.6%. SIA and its low-cost subsidiary, Scoot, achieved monthly PLFs of 90.3% and 91.7% respectively, with SIA setting a new monthly PLF record.

The surge in passenger numbers was attributed to heightened demand for air travel ahead of the Easter holiday and increased Europe-bound traffic due to disruptions in Middle East air hubs caused by ongoing regional conflicts. The Group carried 3.8 million passengers in March, marking a 14.9% year-on-year increase and setting a new monthly record. This contributed to a total passenger carriage of 42.4 million for the financial year 2025/26, surpassing the previous record of 39.4 million in FY2024/25 by 7.7%.

On the cargo side, SIA experienced a 2.4% increase in cargo loads, despite a 1.3% decrease in capacity. The cargo load factor improved by 2.1 percentage points to 59.0%, partly due to spillover volumes from Middle East airspace disruptions.

In March, Scoot launched new services to Tokyo (Haneda), whilst both SIA and Scoot implemented rolling cancellations of flights to Dubai and Jeddah due to geopolitical tensions. By the end of March 2026, the Group’s passenger network spanned 134 destinations across 35 countries and territories, with SIA serving 77 destinations and Scoot 82. The cargo network covered 137 destinations in 36 countries and territories.

Greenlyzer, a Singapore-based deep tech company, has partnered with Cambodia’s Royal Group to accelerate the deployment of green hydrogen energy solutions across ASEAN. The Memorandum of Agreement (MOA), signed on 20 April in Singapore, aims to explore pilot deployment opportunities for Greenlyzer’s Green Moving Grid, a hydrogen-based energy system optimised by AI for data centres, industrial facilities, and remote locations.

The collaboration leverages Royal Group’s extensive operational reach in Cambodia’s banking, energy, telecommunications, and infrastructure sectors. This partnership builds on existing ties between Alpha Ladder Group’s payments subsidiary, MetaComp, and Wing Bank (Cambodia) for cross-border digital payment solutions.

Tin Pei Ling, Group Co-President of Alpha Ladder, highlighted the strategic importance of energy security, stating, “The ASEAN Power Grid is now more pertinent than ever as it will strengthen regional energy security and diversify supply.” Dr. Huang Kuan, CEO of Greenlyzer, added, “Our Green Moving Grid offers a next-generation, augmentative layer to the conventional grid anchored in green hydrogen that is faster and more flexible to develop and deploy.”

Neak Oknha Kith Meng, Chairman and CEO of The Royal Group, emphasised the partnership’s role in advancing clean energy innovation, noting, “This initiative represents an important step towards building future-ready energy infrastructure that supports Cambodia’s growth and contributes to the region’s long-term energy resilience.”

This agreement underscores Singapore’s position as a green innovation hub and aligns with ASEAN’s vision of an interconnected energy grid. As Singapore prepares to chair ASEAN in 2027, the partnership highlights Cambodia’s growing role in the region’s green and digital economy.

Singapore businesses are facing significant hurdles in achieving their objectives, with 71% missing key goals due to talent shortages, according to Remote’s Global Workforce Report. The report, based on a survey of 250 local HR leaders, highlights the challenges of finding the right talent and the complexities of international payroll systems. As a result, many firms are expanding their global workforce, with the average company now employing talent in three or more countries.

The report reveals that only 56% of Singapore’s business and HR leaders rate their company’s retention strategies as excellent, lagging behind the global average of 62%. This shortfall is compounded by the rising cost of living, which has led 80% of HR leaders to report increased pressure from employees for higher pay. Improved pay transparency is seen as a solution, with 81% of business leaders believing it fosters a healthier workplace culture.

Payroll complexities are also a significant barrier to growth. Remote’s data indicates that 45% of businesses have had to block international hires due to payroll setup issues, and 25% view their current payroll systems as a risk. Additionally, 41% of firms face stringent security and data protection requirements, whilst 36% struggle with compliance across various locations.

Barry Flanagan, Vice President of Payroll at Remote, emphasised the need for automated payroll tools to mitigate these risks and support sustainable growth. “Relying on fragmented, manual processes for international payroll exposes growing companies to unnecessary risks and slows down their momentum,” he stated. The report underscores the importance of reliable payroll systems and pay transparency in building trust and retaining employees.

Singapore Changi Airport reported a 2.3% year-on-year increase in passenger movements for the first quarter of 2026, reaching 17.6 million. This growth was primarily driven by strong demand in North Asia and Europe, despite an 80% decline in traffic to and from the Middle East due to geopolitical tensions. Aircraft movements also rose by 1.4% to 95,300 during the same period.

China led Changi’s top markets, followed by Indonesia, Malaysia, Australia, and India. Notably, Vietnam and China showed the strongest growth among the top 10 markets, with increases of 26.5% and 17.7% respectively. The busiest city links included Kuala Lumpur, Bangkok, Jakarta, Tokyo, and Hong Kong, with Shanghai, Taipei, and Tokyo experiencing the most significant growth.

Changi Airport handled 517,000 tonnes of airfreight in Q1 2026, marking a 7.6% increase from the previous year. This growth occurred amidst global trade uncertainties, with China, the United States, Australia, Hong Kong, and India being the top air cargo markets.

Changi Airport Group’s Executive Vice President for Air Hub and Cargo Development, Lim Ching Kiat, stated, “Travel demand in the quarter remained strong, bolstered by growth in North Asia and Europe.” In response to Middle Eastern route disruptions, airlines introduced approximately 90 additional flights to destinations such as Frankfurt, London, and Sydney.

Looking ahead, Changi Airport is expanding its connectivity with new services. Scoot has launched flights to Chiang Rai and Palembang, whilst Jetstar Airways has introduced routes to Australia’s Sunshine Coast and Newcastle. Additionally, Qantas Freight has commenced a new service, enhancing cargo options across Asia, Australia, and Europe.

Ascott Limited, the lodging arm of CapitaLand Investment, has reported its most successful year in Southeast Asia, with over 7,300 units signed in 2025. This represents a 55% increase from the 4,700 units signed in 2024, positioning Ascott among the top three hospitality companies in the region for new signings, according to Horwath HTL.

The company’s expansion is driven by Southeast Asia’s robust tourism recovery post-COVID-19, with increased intra-ASEAN travel and spending. Ascott’s strategy includes a diverse portfolio of over 200 operational properties and a pipeline of about 150 properties, reflecting strong owner confidence in its brands.

Serena Lim, Ascott’s Chief Growth Officer, highlighted the company’s strategic growth, stating, “Southeast Asia continues to be one of the most dynamic hospitality markets in the world, and Ascott is well positioned to capture the opportunity.”

Ascott’s development pipeline will introduce its presence in approximately 20 new cities, including Phu Quoc in Vietnam and Phuket in Thailand. The company is also focusing on conversions, with 30% of its pipeline involving repositioning existing assets, such as the rebranding of three Bayview properties in Malaysia.

Upcoming openings include Ascott Tay Ho Hanoi, set to be a major MICE (meetings, incentives, conferences, and exhibitions) destination, and Lasong Hotel & Villas Sam Son, a wellness resort in Vietnam. These developments underscore Ascott’s commitment to expanding its leisure offerings and enhancing its presence in Southeast Asia’s hospitality market.